Clorox To Buy Burt's Bees

U.S. consumers are increasingly picking up "natural" products and so Clorox will pick up Burt's Bees.

Clorox
announced Wednesday that it will pay $925 million in cash for privately held Burt's Bees. Burt's Bees manufactures natural personal care products like lip balm and body lotion.

According to Clorox, the natural personal care market already accounts for over $6 billion in sales each year and is growing rapidly. Sales are climbing at an annual rate of 9%.

"The Burt's Bees brand is well-anchored in sustainability and health and wellness, and we believe it will benefit from natural and "green" tailwinds," said Clorox Chief Executive
Donald R.
Knauss
Donald R. Knauss
. "It's in an economically attractive category with a margin structure that will be highly accretive to Clorox."

Shares of Clorox rose $1.69, or 2.8%, to $62.69, in afternoon trading. They were also boosted by better-than-expected earnings from the company.

Clorox said Wednesday that its first-quarter profits fell to $111 million, or 76 cents per share, from $112 million, or 73 cents per share, a year ago. Earnings were dragged lower by a one-time charge of 12 cents per share from the company's restructuring efforts.